Ticket No.20326 which will have been turned over to him by withdrawing the securities. The securities the teller. Should there be a check either received or paid out in connection with the transaction the amount will appear on the face of the ticket and the auditor will trace it through to the proper account. At the end of the day the difference between the total amounts received and delivered by the teller as shown on Form No. 2, must agree with the difference between the total amounts received and delivered by the vault clerk as shown on Form No. 6. Temporary Withdrawal of Securities It is often necessary to withdraw securities from the vault temporarily for purposes of transfer or examination. For this purpose, Form No. 7 is used, the original being pink, the duplicate, yellow. The custody clerk fills in the form, initials and has it authorized by an officer, who retains the pink form to be turned over to the teller, while the yellow copy is turned over to the auditor by the vault officer TRUST DEPARTMENT when they are returned to the vault, must have attached to them the pink ticket in the hands of the teller. This pink ticket is in turn detached by the vault officer and turned over to the auditor, who matches it up with the yellow ticket having the corresponding number, thereby seeing that the transaction is completed. Where these pink tickets are not returned the same day, the teller must be able to show either a transfer ticket or a registered mail form (described later) covering the item. Where part of the securities taken out on a temporary ticket are returned, leaving a balance still outstanding, Form No. 8, which is green, is used, on which reference is made by number to the proper pink slip still outstanding. Delivery and Receipt of Securities by Registered Mail Should the delivery be made by registered mail a carbon copy of the letter accompanying the securities is made on Form No. 9, the officer VAULT BLOTTER Trust No. C16701 TRUST DEPARTMENT TEMPORARY WITHDRAWAL. attached to all securities temporarily withdrawn from the vault. items are left for transfer, the receipt must be pinned to this stub and filed with the teller. This stub must! Vault Slip No.20326. PAR AMOUNT Ticket No. PARTIAL RETURN Date BALANCE AMOUNT signing the letter detaching and retaining the copy marked l'auditor's duplicate" the original letter being mailed with the securities and the form marked "copy" sent under separate cover, to be signed by the recipient in the space designated and returned to be matched up with the "auditor's duplicate" in due course. Where securities are received by registered mail a carbon copy of acknowledgment is made on Form No. 10 which is retained by the officer when signing the letter and turned over to the auditor at the end of the day. Where securities are sent out by mail or express, Form No. II is used, the packages being sealed by the mail clerk in the presence of the teller, the contents having been first verified by the teller, and both place their initials in the columns ruled for that purpose. Where it is possible to charge the account with the cost of the shipment, the mail clerk does so, crediting the same to the proper account on the general ledgers and initialing the column marked "charged." TRUST DEPARTMENT Partial Return Slip Refer to Temporary Withdrawal Slip No.20326 Security Index and Payment "Tickler" The custody clerk, after filling in Forms No. 4 and No. 5 makes a separate card, Form No. 12 for each security. This card originally has twelve tabs at the top, one for each month; all are cut off except those indicating the months in which the interest or dividends are due. At the same time where remittances of income are to be made periodically, Form No. 13 is used. These cards are then filed alphabetically and on the fifteenth of each month the clerk having them in charge runs through the file, taking out all cards bearing tabs referring to the following month. These are checked back against the ledgers to be sure that all changes have been noted thereon. The cards referring to dividends are placed in a file by themselves, while those relating to coupons are arranged according to accounts. Coupon envelopes are made PAR VALUE NO BONDS on OR SHARES DIV. 1952 foun mo. M-N AMOUNT OF DATE PAID up showing on their face the number of the account and the name and amount of coupons called for, these envelopes are in turn sent to the vault, where, under the supervision of the vault clerk the coupons are cut and placed in their respective envelopes to be returned to the custody department for verification. Meanwhile, the necessary ownership certificates required by the income tax have been made out and signed by an officer under power of attorney previously filed with the trust company by the depositor when the account was opened. Where authority to claim exemption up to a certain amount has been given a record of the particular exemption claimed in each case is made on Form No. 14. As fast as this is done the cards are turned over to the stenographer who fills out Form No. 15 in triplicate, • State So Sorfolk returning card and form to the custody FORM 12. SECURITY INDEX CARD Apr mn John Smith Pay AMOUNT •100 Check JUI FORM 13. PAYMENT CARD John Smith Trust No. C16701 Residence 9312 South St new fuck Citizen or Resident of Luited States clerk, who, if he finds it correct, initials and holds the original. The duplicate and triplicate are fastened to the coupon envelope and turned over to the bookkeeper on the day the coupons are due. One copy the bookkeeper holds, the other he sends to that department of the company in which the depositor's account is carried. The custody clerk at the same time forwards the original to the depositor by mail as an advice of credit. As fast as the custody clerk finishes with Form No. 12, he stamps the date of payment in the proper column and returns the card to the general file to come up again in due course on the next interest date. Should his current file show any Forms No. 13, they are turned over to the bookkeeper, whose assistant, as soon as the accounts are posted, draws the checks called for and returns them with the cards to the custody clerk, having previously placed his initial and the date in the space so marked on the card. Some Additional Checks on Security Accounts As an additional check on the securities in each account a form of skeleton ledger is used, Form No. 16, in which each account is given a page and each morning is debited or credited with the total amount of securities received or delivered during the previous day as shown by the Securities Journal, Form No. 2, and a new balance extended. This ledger is kept by the bookkeeper, and the custody clerk, when issuing a statement of securities held in any account must have the statement initialed by the bookkeeper showing that it compares as to total with the account on his ledger before it will be certified as correct by an officer of the department. In order to facilitate the work of the auditor, the securities journal is run in two sections, one being devoted to the work of Monday, Wednesday and Friday and the other to Tuesday, Thursday and Saturday. This arrangement permits the auditor to follow through each morning the work of the previous day. As an additional check all tickets, receipts, registered mail forms, etc., are numbered and every number must be accounted for by those in whose charge the forms are placed. 9312 South By New York. Trust No C16701 Dele FORM 16. Skeleton LEDGER Increasing Influence of Women in Banking Experience has demonstrated the fitness of women to occupy important and responsible. positions not only in the clerical but also in the executive work of banks and trust companies. There are quite a number of banks where women are successfully discharging the duties of president. The Interstate Trust & Banking Company of New Orleans is among the first to recognize the qualifications of women to act as directors. At a recent meeting of the stockholders of that institution two women were elected members of the board, namely, Mrs. Samuel B. Sneath of Tiffin, Ohio, and Mrs. John Dibert of New Orleans. They are the widows of men who have been prominent in the upbuilding and early organization of the Interstate Trust. The late Mr. Dibert was vicepresident of the company up to the time of his death and Mr. Sneath was one of the principal associates of the president, Mr. Lynn H. Din-. kins, when he began his connection with that institution. Bankers' Convention Calendar PENNSYLVANIA.-Philadelphia, May 18-19. A. B. A.-Kansas City, Mo., Sept. 25-30. SERVICES RENDERED BY TRUST COMPANIES UNDER VOTING TRUST AGREEMENTS DUTIES WHICH THEY MAY PROPERLY PERFORM Author of "Voting Trusts" and Member of the New York Bar The use of a trust company's services in connection with a voting trust is a rather recent innovation, chiefly for the reason that the appearance of voting trusts considerably antedated the rise of the modern trust company. The expansion in the character of trust company business has been marked, and has naturally involved the designation of a trust company as transfer agent and as registrar of voting trust certificates, as agent of the voting trustees, and as depositary of the trusteed stock, and in some instances even as voting trustee. The first two functions are typical of one branch of trust company business, are attended by no especial complications, and are such as may readily be performed more satisfactorily by a trust company than by an individual. The third function is most commonly represented by the appointment, by the trustees, of a trust company as their agent for the purpose primarily of signing trust certificates in the name of the trustees either on their special instructions or under a continuing authorization. This routine duty is not infrequently performed by an individual agent, but in the case of a large or active issue may doubtless be attended to preferably by a trust company. Trust Company as Depositary of Trusteed Stock The fourth function, that of depositary, is not so commonly exercised by a trust company, and yet such a designation may be quite as desirable. With the possibility of change of personnel among the trustees, the actual custody of the stock certificates may appropriately be left to a disinterested stakeholder. The custodianship may involve a minimum of action on the part of the trust company, particularly in those cases in which the stock transferred to the voting trustees is represented by a single certificate in their joint names. Under such circumstances the trust company acts subject to the directions of the trustees, practically as a trust company serving as a depositary under a deposit agreement acts subject to the directions of the committee, such action and directions in both such cases being limited by the terms of the agreement itself. The use of a trust company thus as a depositary or custodian has at times been enlarged by providing that the stock shall be actually transferred into the name of such depositary. This operates as a rather severe restriction upon the voting trustees, and indeed in most cases may be an unnecessary or impractical refinement. When this course is followed, the trust company usually gives to the trustees the necessary proxies from time to time, such proxies being of course limited by the terms of the voting trust agreement, with the practical effect that the trustees are substantially deprived of the exercise of individual judgment. Such an arrangement serves as an additional check on the voting trustees, and tends to make their function one of formally casting a vote under the terms of a proxy supplied by a third party. Ordinarily in such a case, the only real power left in the trustees may be the selection of the members of the board of directors. Corporate versus Individual Voting Trustees A fifth capacity in which a trust company may act under a voting trust agreement is that of the voting trustee itself. This is not a common arrangement, and by many would be considered inconsistent with the normal purpose of a voting trust agreement, of securing, and depending on, the actual exercise of their judgment by individual trustees. Nor is it as simple to justify, on general principles, a voting trust with a single corporate trustee as one with several individual trustees. Nor, indeed, is the former apt to be as easily and simply carried out as the latter. In the instance where the single trustee is a corporation, two arrangements are possible. Either the usual powers of voting trustees may be vested in the corporate trustee without restriction and theoretically without any chance for the intervention of personal judgments, or, on the other hand, the corporate trustee in its voting of the trusteed stock may be subject to instructions from the holders of trust certificates. In the former alternative the corporate trustee may, to be |